This is an application for an NIMH Mentored Patient-Oriented Research Career Development Award (K-23), entitled "Neural Correlates of Source Monitoring in Schizophrenia." The candidate's interest is in understanding the neural basis for the aberrant memory processes seen in schizophrenia, with an eventual goal of examining the role of these faulty cognitive processes in the production of hallucinations and delusions. In addition to the proposed research described below, the candidate seeks training in functional neuroimaging acquisition and analysis, the cognitive psychology of abnormal memory, and the conduct of ethical clinical research. The proposed research plan, didactic courses, and tutorial instruction from mentors and advisors will serve to foster the candidate's development into an independent clinical researcher in the functional neuroimaging of schizophrenia. Schizophrenia is associated with a particular type of memory disturbance, with intact old/new recognition (i.e., deciding whether an event had occurred previously), but impaired recollection of the contextual details of an experienced event. With limited contextual memory, these patients show deficits in source monitoring, the ability to specify the origin of recollected events. Thus, they may recognize an event as familiar, but have difficulty determining whether the recollected event was actually witnessed, or simply imagined. Although old/new recognition and source monitoring rely on similar neural regions, namely the hippocampus and prefrontal cortex (PFC), source monitoring requires greater activity in these regions. Intact old/new recognition with aberrant source monitoring, as seen in schizophrenia, may therefore indicate that the hippocampaI-PFC network is functioning, but is unable to up-regulate its activity in the face of greater cognitive demands. The proposed experiments will test this hypothesis by using the complimentary approaches of functional MRI and magnetoencephalography to examine both the spatial extent and time-course of neural activity during old/new recognition and source monitoring performance in schizophrenia. In addition to providing greater insight into the pathophysiology of schizophrenia, it is hoped that the proposed experiments will lead to objective biological markers for psychiatric illness states, a critical step in developing and monitoring novel treatment interventions.